Counterfeit products across categories pose challenge to brands and consumers

A survey by ASPA and Crisil Intelligence found that 46 per cent of Hyderabadis encountered counterfeit products in the past year, while 91 per cent had encountered one in their lifetime. Experts called for greater awareness and easier verification mechanisms

Hyderabad: Are you among the 46 per cent of Hyderabadis who encountered a counterfeit product in the last 12 months?

According to a survey by the Authentication Solution Providers’ Association (ASPA), conducted by Crisil Intelligence, 91 per cent of Hyderabadis have come across a counterfeit product at least once in their lifetime. Hyderabad recorded the highest share of consumers in South India who reported encountering counterfeit products, followed by Chennai and Bengaluru.

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The findings were part of the ASPA-Crisil State of Counterfeiting in India 2025 report, released at the “Fake Free India” event here on Monday. ASPA stressed the need for greater consumer awareness and easier product verification mechanisms to help people identify counterfeit products.

The survey covered 1,639 consumers across nine Indian cities and six key sectors, including apparel, FMCG, automotive parts, consumer durables, healthcare products and agro-products.

Consumers estimated that nearly 29 per cent of products available in local markets could be counterfeit. About 74 per cent believed counterfeiting had increased in their region over the past year.

Hyderabad, Chennai and Bengaluru recorded the highest shares of consumers who had encountered counterfeit products in the past 12 months. Hyderabad recorded 46 per cent, while Chennai and Bengaluru recorded 39 per cent and 33 per cent respectively.

A similar survey was conducted in 2022. Compared to the earlier findings, the latest survey showed that 53 per cent of consumers identified online aggregator apps as the primary source of counterfeit products.

The perception was particularly high for apparel, at 71 per cent, followed by consumer electronics at 70 per cent and healthcare products at 60 per cent. Local retail outlets were perceived as the main source of counterfeit agrochemicals by 75 per cent of consumers and also accounted for a significant share in healthcare products at 63 per cent, the report said.

Impact of counterfeiting

Counterfeiting affects brand owners, distributors, retailers, consumers and the government. It can lead to revenue losses, damage to brand reputation and a decline in consumer confidence.

Why counterfeiting?

Several factors contribute to counterfeiting, including demand-supply mismatches, limited adoption of authentication and traceability technologies, reluctance among brands to raise consumer awareness and low adoption of anti-counterfeiting measures.

ASPA president Ankit Gupta said brands were earlier hesitant to discuss the counterfeit menace when it was brought to their attention. However, managements were now more willing to acknowledge the problem and initiate measures such as consumer awareness campaigns and anti-counterfeiting initiatives.

International Consumer Policy Expert Bejon Kumar Misra said counterfeiting was not merely an intellectual property issue or a problem for brands, but also a consumer protection concern.

“Consumers must be empowered with simple, accessible and affordable means to identify, verify and report suspicious products, not merely be told to buy genuine,” he said, stressing the need to turn the fight against counterfeiting into a national consumer movement.